Redbook Operators plead guilty to prostitution charges

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Yes, there were a lot of rumours surrounding that but I have no idea what was fuelled by the press and what was legitimate. It's possible that an inquiry into child prostitution (searching advertising sites for underage girls) simply drew attention to them being one of the larger advertising sites in the area and due to political pressure they became the target of another investigation, however it's also possible there were complaints about specific advertisers that were underage. As there are no charges laid it seems either there was no underage escorts on the site or they simply didn't have a strong case for it. We can't really know what happened with the information given but there are a few advertising sites that changed policies regarding advertising and proof of age after Redbook was shut down.
This is typical, though: rumors that prove untrue or just remain unproven trigger an investigation, and the police lay charges anyway based on what they found. California police have also traditionally been more conservative than California society.
 
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